Mon, Mar. 7, 5:17 PM
- The U.S. Air Force selects the Pratt & Whitney unit of United Technologies (NYSE:UTX) to build the engines for the Northrop Grumman's (NYSE:NOC) new $80B long-range strike bomber, while six other contractors are chosen to work on unspecified "airframe or mission systems."
- Analysts had expected Pratt & Whitney's selection as the engine supplier since the company already builds engines for the Lockheed-built F-35 combat jet.
- The other key suppliers are BAE Systems (OTCPK:BAESF, OTCPK:BAESY) and GKN (OTC:GKNCF), both based in the U.K., as well as Spirit AeroSystems (NYSE:SPR), Orbital ATK (NYSE:OA), Rockwell Collins (NYSE:COL) and Janicki Industries.
- NOC recently resumed work on developing the plane after Boeing and Lockheed dropped a protest when they lost the main contract.
Fri, Feb. 26, 7:58 AM
- Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) won't take legal action challenging the loss of an $80B contract to Northrop Grumman (NYSE:NOC) to build a new long-range bomber.
- The decision by the two biggest U.S. defense contractors, which bid jointly for the program, clears the way for Northrop to develop one of the biggest U.S. weapons systems of the next decade.
- Previously: Boeing weighs options after losing bomber protest (Feb. 17 2016)
Thu, Feb. 25, 9:20 AM
Mon, Feb. 22, 2:58 PM
- Raytheon (RTN +0.8%) says it will team up with Italian aircraft maker Finmeccanica (OTCPK:FINMF) to compete for a contract to build hundreds of new training jets for the U.S. Air Force.
- The Air Force is expected to award a deal next year to build an initial 350 planes to replace aging T-38 training jets, and analysts expect international sales could expand the potential value of the T-X program to ~$15B.
- At least four U.S. defense companies are expected to submit bids, with only Northrop Grumman (NOC +0.8%) pushing a homegrown model; RTN, Boeing (BA +2.2%) and Lockheed Martin (LMT +0.8%) will present foreign-designed aircraft.
Wed, Feb. 17, 3:03 AM
- Boeing (NYSE:BA) is evaluating all legal options after losing a challenge to the U.S. Air Force's decision to award a new $80B-plus bomber contract to Northrop Grumman (NYSE:NOC), Reuters reports.
- The company is likely to decide within days or weeks at the latest on its next steps.
- Separately, China-based Okay Airlines has put in an order for up to 20 Boeing planes at this week's Singapore Air Show in a deal valued at $1.3B at list prices.
- Previously: Northrop Grumman pops as Boeing protest over bomber contract denied (Feb. 16 2016)
Tue, Feb. 16, 5:49 PM
Tue, Feb. 16, 12:41 PM
- Northrop Grumman (NOC +1.5%) pops higher on news that the U.S. Government Accountability Office denied a protest filed by Boeing (BA +3%) and Lockheed Martin (LMT +0.9%) against an $80B contract for a new bomber for the U.S. Air Force.
- The GAO says it found no basis to sustain or uphold the protest, and that the Air Force's technical evaluation of the rival bids and their cost was "reasonable, consistent with the terms of the solicitation, and in accordance with procurement laws and regulations."
- NOC was chosen in October to produce the military’s first new bomber since the Cold War and one of the biggest U.S. weapons systems of the next decade.
Thu, Feb. 11, 2:22 PM
- Boeing (BA -8.9%) maintains its share price plunge and is causing the Dow to underperform the other major averages following a report that the SEC is probing the company’s accounting methods on its 787 Dreamliner and the 747 aircraft; Boeing has refused to comment.
- The day's decline roughly matches the 8.9% drop late last month when the company issued disappointing financial guidance. which had been the biggest single-day drop since 2001.
- The news also has sparked selling in other aerospace stocks at a time when investors in the sector have become increasingly nervous that booming aircraft orders could founder as Boeing and Airbus (OTCPK:EADSF, OTCPK:EADSY) boost production to record levels: LMT -3.2%, NOC -3.2%, RTN -3.4%.
- S&P Global Market Intelligence’s Jim Corridore retains his Buy rating, saying that while the news is "a near-term negative that may overhang the stock and could lead to a large charge or fine, we remain positive on the large backlog of business Boeing has accumulated, and remain positive on overall aerospace demand."
- Buckingham Research reiterates an Underperform rating with a $108 price target in a report that preceded the SEC story, citing below consensus free cash flow and pricing pressure as key catalysts for a downward move.
- Earlier: WSJ: Boeing to cut jobs as Airbus competition heats up (Feb. 10)
Fri, Feb. 5, 11:25 PM
- The U.S. Defense Department plans to buy 404 Lockheed Martin (NYSE:LMT) F-35 fighter jets over the next five years, part of revised procurement figures to be released Tuesday when the Pentagon issues its fiscal 2017 budget and the new five-year plan, Reuters reports.
- The orders will amount to ~$40B in new revenue for LMT, the DoD's top supplier, and engine maker Pratt & Whitney (NYSE:UTX), according to the report.
- The new plan calls for the Air Force to buy 243 F-35 jets through fiscal 2021, 45 fewer than planned, as the service juggles funds to pay for a new long-range bomber to be built by Northrop Grumman (NYSE:NOC) and KC-46A refueling planes to be built by Boeing (NYSE:BA).
Mon, Feb. 1, 8:52 AM
- BofA/Merrill Lynch upgrades Northrop Grumman (NYSE:NOC) to Buy from Neutral, with a $210 price target.
- The market is discounting the company's long range strike bomber, analysts said.
Thu, Jan. 28, 8:31 AM
- Adjusted operating income of $602M, or $2.18 per diluted share vs. $693M, or $2.26 per diluted share in the fourth quarter of 2014.
- Sales by segment: Aerospace -4%; Electronic -7%; Information -13%; Technical -4%.
- During the quarter, the company repurchased 1.6M shares of its common stock for $283M.
- Total backlog as of Dec. 31 was $35.9B compared with $38.1B a year ago.
- Outlook for 2016: Diluted EPS of $9.90-$10.20, on sales of $23.5B-$24B.
- Q4 results
Thu, Jan. 28, 6:42 AM
- Northrop Grumman (NYSE:NOC): Q4 EPS of $2.18 beats by $0.17.
- Revenue of $5.69B (-6.9% Y/Y) misses by $250M.
Wed, Jan. 27, 5:30 PM
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Fri, Jan. 22, 8:07 AM
- China could "leapfrog" the U.S. in certain technological capabilities in coming years, thanks to its burgeoning investment in research and development, the head of Northrop Grumman (NYSE:NOC) warned at an aviation organization in New York.
- "Although the United States is still the leader overall in research and development spending, that is changing quickly," CEO Wes Bush declared.
- Measured in purchasing power parity, China is expected to surpass the United States in R&D spending by around 2022, he said, adding that "the quality of R&D is China is impressive."
Fri, Jan. 15, 5:57 PM
- Defense stocks such as Raytheon (NYSE:RTN), General Dynamics (NYSE:GD) and L-3 Communications (NYSE:LLL) could outperform in a risk-off market, Credit Suisse analysts assert.
- The firm says it favors defense names in a risk-off market, despite their higher relative valuations, as the companies lack significant global economic or currency exposure, and so performance should be more predictable and the resulting cash returns more reliable; also, with the DoD budget inflecting, most companies in the group should begin to deliver organic growth for the first time in several years.
- Credit Suisse retains Outperform ratings for RTN, GD and LLL, and upgrades Huntington Ingalls (NYSE:HII) to Neutral from Underperform, while Neutral-rated Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC) should be solid performers in a risk-off environment.
Dec. 25, 2015, 4:02 AM
- Northrop Grumman (NYSE:NOC) has won a contract worth $93M to build a full-scale demonstrator of a new unmanned spy plane that would operate on destroyers and frigates.
- Navy officials would like UAVs to carry out intelligence and surveillance measures from smaller warships, but current drones are unable to take off and land from confined spaces at sea and then stay airborne for long periods.
- Aerovironment (NASDAQ:AVAV), the only other competitor for the contract, did not submit a bid.
Northrop Grumman Corp. is a global security company which provides innovative systems, products and solutions in unmanned systems, cyber, command, control, communications and computers intelligence, surveillance, reconnaissance and logistics and modernization to government and commercial... More
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